If you’re buying a home in San Diego, you may come across Mello-Roos taxes—an additional cost on top of standard property taxes. While this tax may sound complicated, understanding how it works can help you make an informed decision when purchasing a home.
What is Mello-Roos?
Mello-Roos is a special tax imposed on properties within designated Community Facilities Districts (CFDs). These districts were established to fund public services and infrastructure in developing areas, such as:
- Schools
- Roads and bridges
- Parks and recreation centers
- Fire and police stations
Instead of using general city or county funds, Mello-Roos ensures that new developments can support their own infrastructure needs.
How Much Does Mello-Roos Cost?
The amount a homeowner pays in Mello-Roos taxes varies based on the specific CFD and the needs of the community. Some key factors include:
- Location – Some neighborhoods, particularly newer developments like Pacific Highlands Ranch, Del Sur, and 4S Ranch, have higher Mello-Roos rates due to extensive community improvements.
- Property Size & Value – Larger or higher-value properties may have a higher tax assessment.
- Fixed vs. Ongoing Taxes – Some Mello-Roos taxes expire after 20-40 years once bonds are repaid, while others continue indefinitely to maintain services.
Mello-Roos assessments are usually added to your annual property tax bill and can range from a few hundred to several thousand dollars per year.
How to Determine if a Home Has Mello-Roos
Before purchasing a home, you can check if it has Mello-Roos taxes by:
- Reviewing the Property Tax Bill – Any special assessments, including Mello-Roos, will be listed.
- Asking Your Real Estate Agent – They can provide information on a property’s tax obligations.
- Checking with the County Assessor’s Office – You can verify whether a property falls within a CFD and get details on tax rates.
Is Buying a Home with Mello-Roos Worth It?
While Mello-Roos taxes increase housing costs, they also contribute to well-planned communities with top-tier schools, modern amenities, and better infrastructure. Many buyers find the benefits—such as higher property values and desirable neighborhoods—outweigh the added cost.
If you’re considering a home in San Diego and have questions about Mello-Roos, We’d be happy to help. Let’s find the right home for you—one that fits both your budget and lifestyle!